Rising propane costs have many homeowners and consumers worried about the risk of shortages in 2023.
The reality is that fossil fuels are nonrenewable resources. Propane requires many steps to produce, prepare, and transport supplies across the country to meet various demands. There are many factors that threaten propane inventories this year, such as increased demand, cold winter weather, rail transportation issues, and soaring costs for every step of this process.
We work to provide propane education to our customers so you can learn how changes to production, supply, and costs will affect you. Keep reading to get answers to frequently asked questions about the state of the propane industry and potential propane shortage.
Is demand for propane growing?
Demand for propane in Ontario has grown considerably in the past couple of years due to a variety of factors:
- Suppliers have seen an increased demand for propane as people stay at home more due to the COVID-19 pandemic.
- People rely on a steady supply of home propane, more heavily now for heat and cooking.
- Switchovers from oil furnaces and appliances to propane have slowed down, but they still account for a significant percentage of new propane customers each year.
The harsh, cold weather in Ontario certainly creates higher demand during the heating season. Additionally, a cold winter can make transportation and manufacturing of propane more difficult. Delays in a propane supply company obtaining the product also makes it harder to deliver the product to their customers.
How has propane supply changed over the past 5 years?
Recent years have seen many hold-ups in the Canadian Rail system, which can lead to problems for provinces without significant propane production. The need to bring the product in, with no means to transport it, results in the fuel supply vanishing quickly.
Increasing Propane Prices
The price of everything, including energy bills, has increased significantly with inflation and the COVID-19 pandemic. Unfortunately, many businesses across the energy sector have seen an increase in their production and transportation costs, which have had to be passed down, in part, to consumers.
Can you refill propane tanks before they are empty?
It is generally not recommended to run a propane tank empty, as it can lead to problems, and propane systems can be damaged if they are trying to run propane that isn’t in the tanks. Instead, it is recommended to have your propane tank refilled when it reaches about 20-30% filled. This gives our team enough time to schedule and deliver before you run out of propane.
Automatic Propane Delivery
We use industry-leading software to forecast your propane demand, and can provide automatic delivery options to your home or business. The biggest impact of this service is the security of a reliable propane supply.
Propane Tank Tip
It’s important to note that tanks are only filled to 80% to allow room for propane to expand. Keeping an eye on your tank levels in the winter months is a recommended practice.
How can Primemax Energy help?
While it is still to be determined if we will face a propane shortage in 2023, Primemax Energy is dedicated to providing its customers with the highest level of service possible. We support our local propane network in Sarnia, Corunna, and Putnam, and continue to work our hardest to ensure that you and your family aren’t left in the cold.
Canadian Propane Association
If you are concerned about the availability of propane in Ontario or have any other questions, contact the Canadian Propane Association. The association is a national trade association representing the propane industry in Canada, and they may have more information about the availability of propane in Ontario and any potential or expected shortages.
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